Nayax (NYAX) Oppenheimer 27th Virtual Annual Technology, Internet & Communications Conference summary

Company overview and market positioning

• Operates globally in the unattended payment space, serving 44 verticals such as vending, EV charging, laundromats, and parking.

• Presence in over 120 countries, with 1.2 million devices and 85,000 customers, 75% of whom are small businesses.

• Achieved $78 million in revenue and $8.1 million Adjusted EBITDA in the latest quarter, with a net retention rate of 130% and churn below 3%.

• Revenue is geographically diversified: 40% North America, 40% Europe, 11% Australia.

• Focuses on enabling payments and simplifying business operations for customers.

Business model and financial performance

• Utilizes a recurring revenue model: 70% of revenue is recurring, from SaaS subscriptions and transaction processing fees.

• Hardware is sold on a one-time basis, with recurring revenue growing 47% quarter-over-quarter.

• Achieved 44% gross margins, the highest in years, with significant improvements in both hardware and recurring revenue margins.

• Transitioned to profitability at the Adjusted EBITDA level, aiming for free cash flow positivity in 2024.

• Five-year roadmap targets $1 billion in revenue by 2027-2028, 50% gross margins, and 30% Adjusted EBITDA.

Growth strategy and market opportunity

• Organic growth driven by adding 4,000-5,000 new customers per quarter, with 9,000 added in the latest quarter.

• Expanding into high-growth verticals like EV charging, parking, and mass transit.

• Inorganic growth through targeted acquisitions for geographic and product expansion, such as recent moves into Brazil and the fueling sector.

• Total addressable market estimated at 45 million unattended devices globally, growing to 60 million by 2029, with only 20-25% currently cashless.

• Consumer behavior is shifting rapidly to cashless payments, now 65-70% of transactions in vending machines.